Oil Prices Drop, Global Shares Rise After Iran-Israel Ceasefire

Oil prices dropped 4% while global shares surged and the dollar fell on Tuesday after U.S. President Donald Trump announced a ceasefire between Israel and Iran. This came after the U.S. bombed Iran's nuclear sites over the weekend.

Brent futures fell 7% on Monday and U.S. shares rose following Iran's limited retaliation against a U.S. base. The global benchmark was at $67.68 a barrel, the lowest since June 11. U.S. crude futures dropped to $66.02 a barrel.

Market attention is now turning to the upcoming tariff deadline in two weeks. The resolution of the Middle East conflict has raised hopes for progress on trade deals.

Equity markets responded positively to the eased tensions. S&P 500 futures were up 1% and Nasdaq futures 1.3%. Europe's Stoxx 600 gained 1.3%, with travel stocks surging 4% and oil and gas names falling 3%.

Asian shares outside Japan rose 2.2%, and Japan's Nikkei climbed 1.1%. Japan's tariff negotiator is planning a visit to the U.S. to address tariffs affecting Japan's economy.

Government bonds were largely unaffected. The Fed is considering rate cuts as risks to the job market increase. Fed Chair Powell will provide further insights on Tuesday.

The dollar weakened against the yen and euro. Ten-year Treasury yields were steady, and gold prices dropped 1%.